MGMT3020 Final

All material is used for study purposes only.

Exam breakdown= There are 55 questions total -- 20 each from each chapter for 40, and then 3 each from Groomes,
Vandenberg (change leadership), Vandenberg (Charlotte Beers), Pittard (principles of success), and Vandenberg (Into
the Fray case) for the other 15

Ch. 17. Career Management

 Career- a pattern of work related experiences that spans the course of a person’s life
o Made up of exchanges btw individuals and organization
 Idea of reciprocity is inherent
o Objective element- observable, concrete environment
 Ex. training
o Subjective element- your perception of the situation
 Ex. Rather than training, you change your aspirations
 Career Management
o Lifelong process of learning about self, jobs, and organization, setting personal career goals, developing
strategies for achieving the goals, and revising the goals based on work and life experiences
 Not just the individual’s responsibility, but the organization’s duty as well
 LO 1: Occupational and Organizational Choice Decisions
o Today, Leaner organizations are demanded
o Individuals are responsible for managing their own careers
o New career characterized by discrete exchange, occupational excellence, organizational empowerment,
and project allegiance
 Discrete exchange (contrasts mutual loyalty)- occurs when an organization gains productivity
while a person gains work experience
 A short term arrangement
 Recognizes that job skills change in value and that renegotiation of the relationship must
occur as conditions change
 Occupational excellence (contrasts one-employer focus)- continually honing skills that can be
marketed across organizations
 I am an engineer..instead of I am an IMBer
 Organizational empowerment (contrasts top-down approach)- power flows down to business
units and in turn to employees
 Expected to add value and help the organization remain competitive
 Project allegiance (contrasts corporate allegiance)- both individuals and organizations are
committed to the successful completion of a project
 Firm’s gain is the project outcome; Individual’s gain is experience and shared success
 Break up after the project is complete
o Occupational Choice
 In choosing an occupation:
  Individuals assess their needs, values, abilities,
and preferences and attempt to match them with an
occupation that provides a fit
 Holland’s Theory of occupational choice
o Also influenced by parent’s occupations,
social class, economic conditions, and
geography
o Organizational Choice and Entry
 Expectancy theory view- individuals choose organizations that maximize positive outcomes and
avoid negative outcomes. & Compare with their other choices
 Less rational- choose one based on one or two criteria, and then distort their perceptions to
justify
 Conflicts in choosing:
 1. Organizational efforts to attract individuals
o May look overly attractive trying to get the best candidates
 2. Individual’s attempt to attract the organization
o Want good offers
o Won’t tell their faults
o Will say they want the job that is open, not what they would actually prefer
 3. Organizational selection of individuals
 4. The individual’s choice of an organization
 A good way to avoid these conflicts are realistic job previews
 Both positive and negative info given to potential employees about the job they are
applying for, thereby giving them a realistic picture of the job
 Traditional recruiting yields high expectations and low job satisfaction
 Is an inoculation against disappointment
 LO 2: Foundations for a Successful Career
o Become your own career coach
 See yourself as being in business for yourself
 Know your skills and how to package them
 Competence in dealing with change
 Self-reliance to deal with stress
 Be flexible, team oriented, energized by change, and tolerant of ambiguity to be most successful
 Behave ethically, stand by your values, and build a professional image of integrity
o Develop emotional intelligence
 New managers fail near 40% of the time
 Fail to Build relationships with peers and subordinate (82%)
 Confused or uncertain about what their bosses expect (58%)
 Lack internal political skills (50%)
 Unable to achieve 2 or 3 of most important objectives of the new job (47%)
 ALL lack of human skill
 Emotional intelligence attributes:
 Self awareness
 Self control
 Trustworthiness
  Confidence
 Empathy
 High levels of EI are associated with success
 Improves one’s ability to work with other team members and to provide high-quality
customer service
 Can be developed & can improve throughout one’s life
 LO 3: The Career Stage Model
o 4 stages:
 1st. Establishment
 Activities center around learning the job and fitting into the organization and occupation
 2nd. Advancement
 High achievement-oriented stage in which people focus on increasing their competence
 3 . Maintenance
rd

 Individual is trying to maintain productivity while evaluating progress toward career

goals
 4 . Withdrawal
th

 Contemplation of retirement or possible career change

 LO4: The Establishment Stage
o Newcomer. Dependent on others. Learning about the job and the organization
o Become a stable adult. Separates from parents. Less emotionally and financially dependent
o Big time of transitions in personal and work life
o Psychological Contracts
 Implicit agreement btw the individual and the organization that specifies that each is expected
to give and receive in the relationship
 Individual- receive a salary, status, advancement opportunities, challenging work
 Organizations- receive time, talents, energy, and loyalty
 Btw individuals too
 Newcomer-insider
 Support:
o Protection from stressors
o Informational
o Evaluative
o Modeling
o Emotional
 When a breach occurs, employees may start slacking, be absent from work. And if they
decide to leave the company, may feel negatively towards their new employers
 LO 5: The Advancement Stage
o Strive for achievement, greater responsibility
o Around the age of 30- followed by a period of stability
o Career Paths and Career Ladders
 Career paths- sequences of job experiences that an employee moves along during his or her
career
 During the stage, they examine their career dreams, and the paths that lead there
 Many women now decide to start their own businesses. 10.6 million women-owned firms in the
US, almost half
  Career ladders- structures series of job positions through which an individual progresses in an
organization
 Some companies use traditional approach
o SW Bell- rotate supervisors to gain different experience
 Some use contemporary approach
o Sony- can move onto different projects as you like, creativity is stressed
 Career Lattice- an approach to building competencies by moving laterally through different
departments in the organization or by moving through different projects.
 Develop many skills
 Critical that top management supports it
o Finding a Mentor
 Mentor- an individual who provides guidance, coaching, counseling, and friendship to a protégé
 Sponsorship
o Actively helping the individual get job experiences and promotions
 Facilitating exposure and visibility
o Providing opportunities for the protégé to develop relationships with key figures
in the organization in order to advance
 Coaching
o Provides advice in both career and job performance
 Protection
o Shield protégé from potentially damaging experiences
 Usually leads to more success. Higher salary later in life
 Becomes a role model. Social learning
 Acceptance and confirmation
 Friendship
 Good mentoring relationship
 Reg contact that has a clear purpose
 Consistent with the organization’s goals
 Similar personality
 Effective at addressing the challenge of workforce diversity
 Problems:
o Availability of mentors, issues of language and acculturation, cultural sensitivity
o Negative stereotypes
 Informal group: Network groups
 Help members indentify with those who are like them build social support
 Formal: PwC
 Newcomer is assigned a mentor
 Big 4 accounting firms- mentoring is important
 Some are left to find a mentor by themselves
 Scared to do so in fear of being accused to sexual advances
 Women report more of these barriers than men do
 Set up events good for approaching mentors
 Seminars, multilevel teams, and social events
 Phases of mentoring relationships
 Initiation- begins to take on significance for both involved
  Cultivation- relationship becomes meaningful, protégé shows rapid progress
 Separation- need to assert independence and work more autonomously
o Voluntary or involuntary
 Redefinition- occurs if separation was successful
o Consider as colleagues or friends
o Dual-Career Partnerships
 Relationships in which both people have important career roles
 Mutually beneficial, can be stressful too
 Usually center around man bringing home the income, and the woman caring for the home and
family
 Working women need more help from the man dealing with child care
 Jealousy can become a problem
 Whose career takes precedence?
o Work-Home Conflicts
 Can lead to emotional exhaustion
 Can affect work performance and the performance of coworkers
 Problems for women
 Are quicker to share the provider role than men have been to share responsibilities at
home
 Work-home or work-family
 Offer flexible work schedules
 Give freedom to deal with personal concerns/ issues at home
 Company sponsored child care
 Eldercare
 Many people are found caring for not only their young children, but older relatives as
well
 Family friendly policies must be applied equally to men and women both
 LO6: The Maintenance Stage
o Career Growth slows
o May reach a career crisis
o Give sabbaticals rather than bonuses at this point
 Employee is usually burnt out
o Some may be content
o Two issues:
 Sustaining performance
 Reach a career plateau- point where the probability of moving further up the hierarchy
is low
 Solutions:
o Lateral moves
o Become involved in teams and develop new skills
o Need continued affirmation of their value to the organization
 Becoming a mentor
 Share their wealth of knowledge
 Keep motivated
 LO7: The Withdrawal Stage
 o Occurs later in life & signals that a long period of continuous employment will soon come to a close
o Older workers may face discrimination and stereotyping
 May be viewed as less productive, resistant to change, and less motivated
 Discrimination is prohibited under the Age Discrimination in Employment Act
o Older worker are actually very valuable
 Strong work ethic, loyalty
 Lower rates of tardiness and absenteeism
 More safety conscious
 More satisfied with their job than younger workers
o Planning for Change
 Decision to retire is an individual choice. But the need for planning is universal
 Able to work temporarily for another company
 Plan not only for financial future, but hobbies and travel as well
 Volunteer activities, spend more time with family members
o Retirement
 Trends:
 Early retirement
 Phased retirement
o Gradually reduce hours and responsibilities
 Reduced workdays/ workweeks
 Job sharing
 Consulting and mentoring arrangements
o Increase in bridge employment- takes place after a person retires from a full-
time position but before the person’s permanent withdrawal from the
workforce
 Never retiring
 Many are bored with the traditional picture of retirement
 One’s own mortality becomes a huge concern
 Strives to achieve a sense of integrity in life
 To find a meaning and value in life
 LO8: Career Anchors
o Self-perceived talents, motives, and values that guide an individual’s career decisions
 1. Technical/ functional competence
 Want to specialize in a given functional area & become competent
 2. Managerial competence
 Want general management responsibility
 3. Autonomy and independence
 Freedom is key
 Often uncomfortable working in large organizations
 4. Creativity
 Feel a strong need to create something
 5. Security/ stability
 In a single organization or in a single geographic area
Ch.2 Leading Strategically
 Strategic leadership involves developing a vision for the firm, designing strategic actions to achieve this vision,
and empowering others to carry out those strategic actions
 Establishing the Vision and Mission
o Vision 10-20 years. Strategic plans 3-5 years
o Vision contains
 1. A statement describing the firm’s DNA, Picture of the firm as it is hoped to exist in the future
 2. Mission- which defines the firm’s core intent and the business or businesses in which it
intends to operate
 Mission flows from the vision and is more concrete in nature
o Ex. Apple CEO Steve Jobs
 Developed Pixar, Apple Macintosh computer, Apple iPod, iPhone
o Some would rather have a positive image/ most admired
o An effective strategic leader can inspire stakeholders to commit to achieving it
o Employee commitment is just as important
 Developing the Top Management Team & Succession
o Top Management Team- group of managers charged with the responsibility to develop & implement the
firm’s strategies
 Usually VPs or higher
 People choosing a team often choose people who think like them (homogenous team). May
come to a quick decision, and are more prone to making mistakes
 Can overlook important issues and make errors in judgment
 Need to be a heterogeneous team
 From different backgrounds and types of experience
 Likely to take more time
 Make better decisions
o Management Succession
 Must develop people who can succeed them
 Some use sophisticated leadership screening systems to select people with the skills needed to
perform well as a strategic leader. Then participate in an intensive management development
program to further hone their leadership skills
 GE has a 10-step program
 One of the most effective
 Change in CEO is a critical succession event in firms
 Hiring from the inside motivates employees because they believe that they have more
opportunities available to them if they perform well
o Less likely to make drastic changes
 If the firm is performing poorly, then someone from the outside is more likely to be
brought in
 A change in strategies may be desired because the firm is performing poorly, or because
opportunities and threats in the competitive landscape require adjustments to avoid poor
performance later
 Sometimes hard to tell if the person is from the inside or outside
 Research shows that companies perform significantly better when they appoint insiders to the
job of CEO
  Also suggests that many don’t have succession plans, so when it comes time to find a new CEO,
many firms turn to outsiders
o Managing the Resource Portfolio
 Resources are the basis for a firm’s competitive advantages and strategies
 Tangible- buildings, manufacturing plants, offices, machinery, and computers
 Intangible- human capital, social capital, and organizational capital, financially capital
 Intellectual property
 Valuable in high technology companies
 TiVo lost value when other DVRs were produced
o Had to patent technologies and form partnerships with TV and cable companies
to maintain the upper hand in the market
 Human capital- includes the knowledge and skills of those working for the firm
o Depend on the knowledge of its workforce & continually Invest in developing
their knowledge and skills
 Focused on learning
o Learning from failing is critical for leaders
o Some “fail better than others”
 It’s not whether you fail but how you fail and what you learn from it
that really matters.
o Effective leaders base strategy on human capital
 must have skills and capital to implement
 motivate and reward
 Social capital- all internal and external relationships that help the firm provide value to
customers and ultimately to its other stakeholders
o Internal
 Among people in the firm
 Help to complete the work while contributing to the overall value of the
firm’s human capital
o External
 Btw those working within a firm and others(individuals and
organizations) outside the firm
 Essential because they provide access to needed resources
 Few firms have all the resources they need
 Help enter new markets
 Venture capitalists
 Used by new companies
 Give financial support and expertise
 Alliances & joint ventures
 Established companies
o Strategic leaders serve as a key points of effective linkages for their firm in a
network of relationships with other orgs
 Strong ties
 Trust exists between parties and reciprocity is expected
 Weak ties
 Serve more informational roles and allow strategic leaders to
stay on top of their firm
 o Most effective occurs when partners trust each other (strong ties)
o Building an Entrepreneurship Culture
 When values support opportunities to innovate, an entrepreneurship culture may develop
 Entrepreneurship culture -encourages employees to identify and exploit new
opportunities
o Encourages creativity and risk taking but also tolerates failure
o Championing innovation is rewarded
 Pressure to be innovative yet profitable
o General Mills
 Focused on innovative activities designed to provide foods that are
healthier and products that meet government agency health standards
 Has improved its new product growth rates and profitability
 Innovation is important in high-tech industries
o Computers
o Creative industries
 Music & film animation
o Apple & Steve Jobs
o 3M- lower tech
 Adhesives, traffic signs, sandpaper
 Yet has been a pioneer
 Being 1st to introduce products in its market- Post-it note
 Vital task for strategic leaders
o Promoting Integrity & Ethical Behavior
 Strategic leaders:
 Develop standards for behavior among employees
 Serve as role models in meeting and exceeding those standards
o Quality of performance is important
o And so is showing integrity and unethical behavior
 Establish boundaries of acceptable behavior
 Establish the tone for org actions
 Ensure that ethical behavior can be serious and extremely costly for a firm and for the
person lacking integrity and behaving unethically
 EX. Of this not happening..Enron
 Acting opportunistically- doing what is best for yourself and not for the firm
 Enron and Tyco
 Corporate governance- How firms govern themselves
 begins with board of directors
 Sarbanes –Oxley Act requires more diligent attention on managers
 Include outside members on the board
o More objective
o Less likely to agree with CEO if the decisions aren’t moving in the right direction
 Related-party transactions- involves paying a person who has a relationship with the firm extra
money for reasons other than his or her normal activities on the firm’s behalf
 Steve Jobs reimbursed $1.2 million for use of a personal jet on co business
 2 directors at Ford Motor Co. receive money for consulting fees
  Fraudulent & other unlawful activities- often worse
 Jerome Kerviel, night trader who pursued secret deals at the the French Bank, Societe
Generale, cost the company $7 Billion
o Using Effective Controls
 Controls are necessary to ensure that standards are met and the employees don’t misuse the
firm’s resource
 Financial controls- focus on shorter term financial outcomes
 On the right path- generating sales revenue, maintaining expenses within reason, and
remaining financially solvent
 Generate an adequate profit
 Too many expense reductions in R&D can damage the firm’s ability to perform
successfully in the future
 Strategic controls- focus on the content of strategic actions rather than on outcomes
 Best employed under conditions of uncertainty
 Must have good understanding of the industry & markets
 Using these encourages managers to adopt longer-term strategies and to take
acceptable risks while maintaining the firm’s profitability in the current time period
 Ex. Dell & Starbucks have both recently brought back their former CEOs to reverse
problems of slow growth and execution
 Most effective is balanced using financial and strategic controls
 To obtain the desired balance in control systems, many use a balanced scorecard
o It provides a framework for evaluating the simultaneous use of financial controls
and strategic controls
o Focuses on 4 areas:
 Financial (profit, growth, and shareholder risk)
 Customers (value received from the firm’s products)
 Internal business process (asset utilization, inventory turnover)
 Learning & growth (a culture that supports innovation and change)
o Allows leaders to view the firm from the eyes of stakeholders such as
shareholders, customers, and employees
 Must begin with a strategic statement & then translate this into specific objectives and
initiatives that serve as a guide for all employees, esp. top management
o Map out operations, execution, as well as the resources necessary

Case Study: Into the Fray

 Lafleur acquired NY-based Campos Beverage
 Michael Feldstein “high potential” maybe able to get the position
 The Rumors
o Employees wondering who will get fired, who will get the position
o Plans for restructuring
o Lafleur people may be favored in the restructuring
o Cultural divide between acquirer and acquired
 The Competitor
o At a party celebrating the expansion of a line of rum-inspired malt beverages
o Albert Joffroy
  Danielle wants to talk to Pierre about some new ideas for how we position our premium brands
 “Numbers matter, but they don’t speak. Danielle—she speaks.”
 The Family
o Talks to wife
 Not playing the game right
 Danielle flying to Paris
 Trying to take over brands
 Have to play the “politics”
 The Opportunity
o Danielle making a play for his job
o Francesca emailed him about an email from Danielle
o Job
 Opportunity in China
 International experience that his resume lacked
 Attractive financially
 Leaving NY, and all the politics behind
 His family?
o Wife had already sacrificed
o Kids would have to get into new schools, make new friends
 The Dilemma
o Michael’s wife, Karen, didn’t want to go
o He was conflicted
 Commentary 1 by Nancy Clifford Widmann & Amy Dorn Kopelan
o Yes he should go
o Clear he won’t get the other job available
o China is a great opportunity
o Michael was acquired, less likely to be chosen
o Doesn’t play the politics well
o Sit down with CEO and agree on certain terms:
 1st: Time limit on contract
 About 2 years
 2 : Get a clear definition of success
nd

 3rd: Negotiate a certain # of trips to both NY and China

 4th: Negotiate a job for his wife
 5th: Request some certain trusted members of his current staff go along with him
o Repair relationship with Danielle
o Promote his accomplishments in China
 Commentary 2 by Fred Hassan
o Does Michael want to stay with Lafleur in the future?
 NO- stay in NY and look for jobs with other firms
 YES- move overseas
o Karen must agree because if the partner isn’t happy, the situation will most likely not turn out well
 Work-life balance
o Taking the job in China
 Will be a mini-CEO
  After successfully completing the job, he’ll be an insider at Lafleur.
 Will have broadened his and his family’s world view
o Politics
 Michael needs to grow up
 Management positions require empathy
 He wants to be rewarded for quietly going about his job
 He plays golf with the CEO
 Shouldn’t have to deal with Danielle
 Commentary 3 by Allan Cohen
o Michael needs to put his goals into perspective and have a greater appreciation for the social alliance
within a organization
o Does he really want the job?
o Does he want to leave his family?
 Is his wife ok with the decision?
o Danielle comes up with new ideas and connecting with people
o Michael frets and views her as threatening and ominous
o He should take the job in China and develop his skills further
 Mend ties with Danielle
 Commentary 4 by Gary B. Rhodes
o Michael needs more info
 What are Lafleur’s expectations for growth in China?
 How much authority will he have?
 Ask Pierre for more info about Lucien’s job
 Assuming too much about Danielle’s motives
 Give her the benefit of the doubt
o Does he want to get ahead at Lafleur?
 Go to china
 He will get a lot of experience
 More opportunities open themselves up

Case Study: Charlotte Beers at Oglivy & Mather Worldwide

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